1 Green Flag About Ulta Beauty Stock That Investors Are Ignoring
Investors haven't allowed Ulta Beauty (NASDAQ: ULTA) stock to participate in this year's market rally. Shares are barely in positive territory through early July, compared to a 15% spike in the S&P 500.
Wall Street is worried about some factors likely to impact short-term operating trends, including slowing demand and an uptick in price cuts by competitors in the makeup and skincare niches. But there's a bigger green flag that points to excellent shareholder returns ahead. Let's take a closer look at what Ulta's customer traffic metric says about the strength of its business today.
Investors sold the stock off after Ulta Beauty announced in late May that demand trends missed their high expectations, with comparable-store sales rising 9%. Comps had jumped 16% in the prior quarter, and Wall Street was hoping to see similarly strong results in early 2023.
Source Fool.com
